Can Z Sink Below $50?

Zillow’s (NYSE: Z) stock price has been on an inclining trend after bottoming out in January 2023 on the daily chart. The price has been increasing steadily, forming higher lows and higher highs. The 50 EMA is also acting as a support, consistently providing a base for the price after each pullback. This support from the 50 EMA has been instrumental in the price’s ascent from $35 to its recent high of $57.

Zillow Group, Inc. released its quarterly results, surpassing analysts’ expectations by a significant margin. The company reported a revenue of $506 million, which exceeded expectations by $33 million. Moreover, the earnings reported were an impressive 106% better than what analysts had estimated. This outstanding performance had an immediate positive impact on the stock, driving it to gain an additional 10% despite initially opening with a gap-down.

However, following the strong earnings release, investors chose to capitalize on the gains by selling off their positions. This led to a decline in the stock price, causing it to break below the key 50 EMA. As a result, the stock entered a consolidation phase near the previous support zone, as investors sought clarity on the direction of the future trend.

Zillow Group offers a range of mobile and web platforms catering to various aspects of real estate and home-related services. With a diverse portfolio of brands, the company assists users throughout different stages of home ownership, including renting, buying, selling, financing, and improving properties.

Zillow Stock Price Prediction: Can Z Sink Below $50? — Source: barchart.com

Zillow stock derivatives data analysis states that the current implied volatility in the market is 37.1% with a decrease of 1.14% in the last trading session. The at-the-money strike price has 133 open contracts on the put side and 1,533 open contracts on the clear domination of Buyers at the current level. The PUT/CALL ratio is 0.51, indicating sellers dominating the overall market as per the data.

Zillow Stock Price Trying To Sustain Above $50

According to the short-term analyst outlook, the price trend remains favorable as long as it stays above the $50 level. Buyers are likely to take advantage of price dips and attempt to drive the price higher through accumulation strategies.

On the other hand, if the recent support level is breached, there could be a shift towards a mild bearish sentiment in the short term. Sellers might gain control and push the price further downward.

In the long term, the price maintains a bullish trend as long as it remains above the 200 EMA. It’s possible that the price will continue to recover and follow the established bullish trend after each temporary decline.

Technical Indicatorss’ Prediction

The technical indicators’, including RSI and MACD, opinion rating for the stock is a 56% buy with a neutral short-term outlook on maintaining the current trend. Long-term indicators are optimistic and fully support the continuation of the ongoing trend.

Conclusion

Zillow’s stock price rose from $35 to $57 after bottoming out in January 2023. The price was supported by the 50 EMA and better-than-expected quarterly results. Following profit-taking by investors, the price experienced a decline and subsequently dropped below the 50 EMA. Currently, the price is in a consolidation phase near the previous support area, showing hesitation as it awaits a distinct trend direction.

Analysts’ perspective indicates that the price retains a positive outlook as long as it remains above the $50 level. This sentiment suggests that there’s potential for the uptrend to continue. Furthermore, the price maintains its long-term bullish trajectory as long as it remains above the 200 EMA, suggesting the likelihood of rebounding after each dip.

Technical Levels

Support levels: $48.62 and $44.12.
Resistance levels: $54.53 and $56.97.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.